Why not sell a put to enter a position and sell calls to sell? I use this and it forces me to sell high and buy low. Covered both ways, limit risk and forces discipline.
Selling a put without owning the underlying stock can be a very dangerous and highly risky investment. Many people, and even big trading firms, utilizing this strategy have incurred steep losses because they believed it “unlikely the company would crash”. When you sell a put, you can be forced to buy equity at a price that is no longer economically attractive, even if it goes to zero as in the case of bankruptcy. This strategy fails to limit downside and introduces very high risk to a portfolio, especially in or near retirement. Thanks for watching!
Why not sell a put to enter a position and sell calls to sell? I use this and it forces me to sell high and buy low. Covered both ways, limit risk and forces discipline.
Selling a put without owning the underlying stock can be a very dangerous and highly risky investment. Many people, and even big trading firms, utilizing this strategy have incurred steep losses because they believed it “unlikely the company would crash”. When you sell a put, you can be forced to buy equity at a price that is no longer economically attractive, even if it goes to zero as in the case of bankruptcy. This strategy fails to limit downside and introduces very high risk to a portfolio, especially in or near retirement. Thanks for watching!